SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
November/December 2017
Let's talk investing Q&A
Q. I’ve heard that holding a mix of investments from both cyclical and defensive industries may help my portfolio’s performance. Please explain.
You probably know that the economy’s ups and downs can affect stock market performance. But economic events don’t affect all stock investments in the same way. Companies in certain areas of the economy — called market sectors — typically are more vulnerable to economic highs and lows.
Cyclical stocks come from industries that tend to be sensitive to how the economy behaves. Demand for products and services in industries such as housing, transportation, financial and technology declines when the economy slows, so stock prices may stagnate or fall. However, cyclical stocks have the potential for significant gains when the economy is thriving.
On the other side are defensive stocks. They’re from industries where consumer demand tends to remain stable, even in a slow economy. They include utilities, food, oil and other staples. Since demand for these products stays relatively constant, defensive stock prices typically don’t rise dramatically when the economy is strong. Including a mix of cyclical and defensive stocks from a variety of market sectors can help diversify your portfolio.
Diversification does not ensure a profit or protect against loss in a declining market.
Q. What does my friend mean when she says she wants to invest in socially responsible companies?
Socially responsible investing (SRI), also known as sustainable, socially conscious, “green” or ethical investing, is a strategy that considers both financial return and social good. In addition to financial performance, investors may look at how companies incorporate environmental stewardship, corporate governance and social issues into their business strategies. ESG (Environmental, Social and Governance) criteria are typically used to screen investments.
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Securities offered through Equitable Advisors, LLC (NY,NY (212) 314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor. Annuity and insurance products offered through Equitable Network, LLC, which conducts business in California as Equitable Network Insurance Agency of California, LLC; in Utah as Equitable Network Insurance Agency of Utah, LLC; and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and Equitable Network are affiliated companies and do not provide tax or legal advice.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively.
GE-4833845.1 (7/22)(Exp. 7/24)
CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
R.I.C.H. Planning Group, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.